In the first quarter 2018 A number of new projects have emerged in the legislative framework, which is extremely important for employers. Among other things, we are looking forward to changes in public law and simplification for entrepreneurs in tax and economic law.
A summary of bills issued in the first quarter 2018 Compared to the last quarter of the previous year, it shows a slowdown. The pace of work is much slower. However, it can soon be expected to accelerate, which will entail a summer break in Parliament's work and the urgent need to enact a number of legislative proposals.
In the last quarter were also performed two projects on changes in tax law. Entrepreneurs are positive, among others, about the direction of changes contained in the bill on amending some laws in order to introduce simplifications for entrepreneurs in tax and economic law. However, companies point out that many of the proposed solutions have a non-financial dimension, but only a relief from many formal activities carried out by the taxpayer.
Changes in public procurement
A major change for entrepreneurs will be the new Public Order Code, which is to replace the current regulations. The latter are unsubstantiated and no longer agree with current challenges and market situations.
The new legal arrangements in this area should primarily introduce a level playing field between the contracting authority and the contractor. Currently, the position of the contractor is very weak, which translates into the transfer of all risks associated with the successful execution of the contract.
This reduces interest in participation in procurement, as can be seen in the annual reports of the President of the Public Procurement Office, from which it is clear that the number of tenderers in public tenders is decreasing.
The new law should also lead to any public procurement being treated by the contracting authority as a joint project to be carried out with the contractor. "Partner relations, based on mutual trust, should become a standard in the procurement of public domains," says the Monitoring of the legislation of employers of Poland.
“The application of contractual penalties by contracting authorities which are being abused today should be significantly reduced.” Employers also emphasise the need to strengthen the extra-price criteria for the selection of tenders and to remove the public in-house mechanism introduced into Polish legislation in June. 2016
Pending the constitution of business
In early March, the Sejm adopted a package of legislation consisting of the so-called business constitution. The aim of the proposed changes is to renew administration-business relations and to remove bureaucratic barriers to business activity.
The Constitution also provides for the establishment of an institution of the Ombudsman for Small and Medium Enterprises in which it will be tasked to protect the interests of entrepreneurs in their relations with the administration.
The business constitution will contribute to deepening changes in the directions set by the so-called package "100 changes for companies”, i.e.
three Deregulation laws passed in December 2016 and April 2017 It was during this time that, among others, the Code of Administrative Procedure (KPA) was revised in a deep way and the catalogue of guarantees of proper conduct from the official was significantly expanded, giving entrepreneurs more certainty than the interpretations and official guidelines.
The catalogue of general principles of KPA includes, among others, the principle in dubio pro libertate, i.e. the free interpretation of the provision in, the principle of settling in factual doubts in favour of the party and the principle of interplay between the authorities in order to settle administrative matters.
The possibility of amicable resolution and settlement of disputes was also introduced. The constitution of business, and specifically the bill – the right of entrepreneurs ó in, goes on in this matter. In the new law there is a catalogue of rules addressed to the official and to the entrepreneur.
Among them we will find, among others, the principle that what is not a law prohibited, is allowed, the principle of presumption of the honesty of the entrepreneur, as well as the principle of settling legal doubts in favour of the entrepreneur and the principle of legal certainty.
The latter will protect the entrepreneur from the negative consequences (including fiscal) of a sudden change of opinion or individual interpretation of a provision by the administrative authority. This will reduce the risk of economic activity, and the arbitrariness of official decision-making will be significantly reduced.
Changes in tax law
In the last quarter were also performed two projects on changes in tax law. Entrepreneurs are positive, among others, about the direction of changes contained in the bill on amending some laws in order to introduce simplifications for entrepreneurs in tax and economic law.
However, companies point out that many of the proposed solutions have a non-financial dimension, but only a relief from many formal activities carried out by the taxpayer.
As a result, the changes may translate more into a reduction in the cost in the functioning of the tax administration than an improvement in the finances of entrepreneurs. Many groups also object to the draft law amending the Goods and Services Tax Act and some other laws.
It aims to seal the tax system and thus reduce irregularities in VAT settlement, which, according to the assumptions, is intended to contribute to improving the business environment of the honest taxpayer.
However, even though sealing the VAT system is a necessary and desirable measure, the proposed solutions can negatively affect business activity and impose additional costs on entrepreneurs, without ensuring that the objective pursued is achieved in the form of a greater impact on the State Treasury budget.
The draft amendment provides, inter alia, for the imposition on sellers of an additional tax liability of 100% the amount of tax due relating to the issuing of an invoice from the NIP to a receipt not containing such a number.
Source: 'The network of monitoring of the law of employers in the Republic of Poland'